South Africa Withdraws Planned VAT Hike as Finance Ministry Responds to Opposition
South Africa’s finance ministry has decided against increasing value-added tax (VAT), which was scheduled for May 1 as part of the 2025 budget. The proposed hike, which was set to occur over two years, faced significant opposition from political parties.
On Thursday, the South African finance ministry announced that it will not proceed with the proposed increase to value-added tax (VAT) as previously scheduled to take effect on May 1. The decision follows plans outlined in the 2025 budget that aimed to raise VAT by one percentage point over a span of two years. This change comes in response to opposition from various political parties who opposed the hike.
The South African government’s decision to withdraw the planned VAT increase reflects sensitivity to political opposition and public concern. By reversing this tax hike, the finance ministry aims to maintain fiscal stability and address potential backlash within the political landscape.
Original Source: www.tradingview.com
